BUDGET 2007-08: BALOCHISTAN

NAJAM KHAN,
Research Associate

July 09 - 15, 2007

Balochistan revealed its budget for FY2007-08 with a total outlay of Rs63.081 billion showing an increase of 5.33% or Rs3.381billion as compared to the last fiscal year with Rs10.278 billion of resource gap which shows small decline while comparing to previous fiscal year. This deficit will be overcome with the assistance of federal government, by increasing local income and economic measures.

The provincial government will spend 10.65% or Rs4 billion more on current expenditure as compare to Rs37.5 billion in the last fiscal year against the total revenue receipts of Rs43.82 billion

BALOCHISTAN BUDGET 2007-08
(Rs. in Million)

Health sector

560

Information

35.6

Physical Planning and Housing

160

Roads

5100

Water

730

Information Technology

41

Education

1900

Agriculture

220

Livestock

60.3

Forestry

25

Wildlife

1.5

Fisheries

6

Industries sector

90

Minerals

411

Manpower Development

30

Sports

51

Culture

50

Tourism

160

The total outlay for development comprises of Rs13.47 billion for FY2008 showing an increase of 24.5% in contrast to previous fiscal year provincial budget. The new ADP has foreign assistance projects of Rs3.332 billion. In FY2006-07, the budget for ADP was of Rs10.82 billion that contained Rs6.35 billion from the provincial government and Rs3.760 billion for foreign project assistance.

Rs.30 million on Quetta Development Authority, Rs.20 million on Gwadar Development Authority, Rs.90 million on Power and Rs.80.5 million on Local Governments.

The provincial government has come to a decision to continue the current development proposals and no new project has been incorporated in this yearís PSDP. The size of the Public Sector Development Programme is Rs10.02 billion. There are 1071 development projects in 2006-07 were to be executed under the PSDP.

OVERVIEW OF PROVINCIAL BUDGETS
(RS. BILLION)

ITEM

BALOCHISTAN

TOTAL

% SHARE IN TOTAL

05-06
(R.E)

06-07
(B.E)

05-06
(R.E)

06-07
(B.E)

05-06

06-07

A. Total Tax Revenues

22.7

22.6

343

401.5

6

7

Provincial Taxes

1

1

62.2

63.3

2

2

Share in Federal Taxes

21.7

21.6

280.8

338.2

6

8

B. Non-Tax Revenues

9.5

13.7

106.8

124

11

9

Total Revenues (A+B)

32.2

36.3

449.8

525.5

7

7

a) Current Exp.

30.3

37.5

377.8

422.6

9

8

b) Development Exp.

19.3

10.8

176.7

188.5

6

11

i) Rev. Account

0

0

55.9

51.3

0

0

ii) Cap. Account

19.3

10.8

120.8

137.2

8

16

iii) Op. Shortfall

0

0

0

0

   

Total Exp. (a+b)

49.6

48.3

554.5

611.1

8

9

Source: Finance Division, (PF Wing)

The government would spend Rs.310 million on Public Health Engineering, Rs.90.2 million on Environment, Rs.81 million on Social Welfare, Rs.110 million on Women Development, Rs.1.28 billion on Balochistan Development Authority.

MEGA PROJECTS UNDERWAY IN BALOCHISTAN
(RS. IN BILLION)

Mirani Dam

5.811

Sabakzai Dam

1.1

Kacchi Canal

31

Water Courses

6

Roads Link

54

Naulang & Bolan Dam

6.428

Flood Water Saving

2.016

Pat Feeder Canal

2.243

Flood Protection

0.288

In order to bring the wealth to the people of Balochistan and equivalence among provinces, the Federal government started mega projects worth of Rs150 billion.

GWADAR:

Gwadar port has since been established at a cost of US$ 300 million with the kind support of the Chinese government. In the same way the government has permitted Rs40 billion project to set up South Asia's largest oil city at Gwadar.

Gwadar Development Authority (GDA) has initiated 37 development schemes at a expense of Rs 36.11 billion while to boost trade and commerce, an international airport will also be built at Gwadar at a cost Rs.16.63 billion.